Bitcoin has fallen sharply amid the recent Binance hack, putting increasing pressure on short-term holders' profitability.

The Bitcoin Short-Term Holder SOPR indicator measures the realized profits and losses of short-term holders. A reading above 1 indicates that profit-taking is dominant, while a reading below 1 indicates that selling at a loss is more prevalent.

The 7-day average SOPR is currently hovering around 1, the break-even level. During previous bull markets, periods when SOPR fell below 1 and short-term holders realized losses often turned out to be favorable accumulation opportunities.

Meanwhile, the Bitcoin On-chain Trader Realized Price and Profit/Loss Margin indicator, which tracks the profitability of investors holding Bitcoin for 1–3 months, also shows a rapid decline in profit margins. Their average cost basis of approximately $75,600 could serve as a key support level in the event of further downside.

Considering both indicators, investors may consider gradually accumulating Bitcoin at current price levels and increasing their buying exposure around $75,600 if the correction deepens.

Written by MAC_D